With mandis in Madhya Pradesh and Rajasthan being closed on Thursday on account of Raksha bandhan, mustard seeds and oil remained stable. In Indore mandis, mustard oil ruled flat at Rs 825, while it was Rs 820 at Neemuch, Rs 830 at Moorena. Similarly, at Kota and Shree Ganga Nagar it was quoted at Rs 830 each, while it ruled Rs 845 in Jaipur and Rs 820 in Gujarat respectively.

In the past one week, mustard oil either ruled stable or declined marginally on weak futures and slack buying support on account of change in weather condition. With decline in stock and drought-like situation in many States, both the stockists and speculators had pushed up prices to a record level of Rs 850 for 10 kg sometime ago. However, recent showers and the Centre’s move to rein in soaring prices in the futures market has dampened trading sentiments among the speculators leading to a decline in mustered oil prices in the past few days.

Mustard seeds in Indore and Neemuch was quoted at Rs 4,500 and Rs 4,300 a quintal respectively. Besides, weak buying support, decline in futures in the past few days have also added to bearish sentiment in mustard. Plant deliveries has also declined on weak demand from the crushers with plant deliveries for Jaipur line on Wednesday declining to Rs 4,420-50 a quintal. However, as compared to its prices in the past 2-3 days, mustard seeds futures on the NCDEX gained marginally with its contracts for August and September closing marginally higher. According to Mr Kamlesh Nahta, a Neemuch-based trader, bearish sentiment in both mustard and its oil in the long run appears unlikely given lower crop output this year which stands at 55 lakh tonnes, 15 lakh tonnes less compared to last year and rise in further demand in the coming months (as consumption of mustard oil picks up during the winter season) and delay in arrival of soyabean crop which is still two months away.

(This article was published on August 2, 2012)
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